Paramount Set To Acquire Warner Bros After Netflix Drops Out of Bidding

Netflix has officially bowed out of its attempt to acquire Warner Bros Discovery, paving the way for Paramount Skydance to take control of one of Hollywood’s most historic studios. The decision came on February 26, after the Warner Bros board labeled a sweetened offer from Paramount as “superior” to the deal previously struck with the streaming giant.

Netflix had initially planned to buy the company’s studio and streaming divisions, but it quickly declined to raise its bid once Paramount increased the stakes. In a joint statement, Netflix co-CEOs Ted Sarandos and Greg Peters explained that they were sticking to their financial discipline.

They noted that at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive. While they maintained that they would have been strong stewards of Warner Bros’ iconic brands, they ultimately decided that the purchase was a nice-to-have at the right price, not a must-have at any price.

With Netflix stepping aside, David Ellison’s Paramount Skydance is now the sole remaining bidder in a massive takeover valued at roughly $110 billion. Unlike the previous proposal from Netflix, Paramount’s deal involves buying the entire company, including traditional cable networks and the news giant CNN.

David Ellison expressed his excitement after the board’s decision, stating that he was pleased they had affirmed the superior value, certainty, and speed to closing that his company’s offer provides. The prospect of Paramount owning Warner Bros has raised a lot of questions about the future of CNN. President Trump has often criticized the network and recently suggested it should be sold off as part of any major corporate merger.

Some reports from The Guardian even indicated that Larry Ellison, David’s father and a major financial backer of the deal, had discussed potential programming and staff changes at the news network with White House officials. Inside CNN, the news of the almost-certain merger has caused plenty of nerves among the staff.

CEO Mark Thompson reportedly sent an internal email telling employees not to jump to conclusions about the future until we know more. The merger would bring CNN under the same corporate umbrella as CBS News, which has already seen its own leadership shakeups and job cuts since the Skydance-Paramount merger was finalized last year.

Outside of this massive corporate drama, Warner Bros Discovery has been trying to keep its creative momentum going with several big projects. They are moving forward with a new Harry Potter television series for HBO, which is expected to span a decade and bring a more faithful adaptation of the books to the screen.

Paramount has also been staying busy by leaning into its most successful franchises. The studio recently saw huge success with Gladiator II and is currently in production for a third Top Gun film starring Tom Cruise. Additionally, they are expanding the Yellowstone universe with more spin-offs.

As the industry watches this merger unfold, many wonder if this is the start of a new wave of consolidation in Tinsel Town. The combined power of HBO, Paramount+, CNN, and CBS would create a media titan unlike anything seen before.

Have something to add? Share your thoughts in the comments.